GLOSSARY

Organizational Justice

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Organisational Justice pertains to how employees perceive fairness in the workplace and involves outcomes, processes, and interpersonal treatment. It is the foundation that affects employee motivation, trust, and organisational commitment. The main types of organisational justice are distributive justice (fairness of outcomes like salary or promotion), procedural justice (fairness in decision-making processes), and interactional justice (fairness in communication and treatment). Together, these shape whether employees feel respected, valued, and treated with dignity, creating a culture of equity in the workplace.

For organising justice to be effectively managed, leaders must be transparent in their policies, apply a fair performance evaluation, and communicate with employees in a respectful manner. Leaders must also ensure that their decision-making processes are objective, apply rules consistently and provide employees with adequate explanations to understand why particular outcomes result. Through organisational justice rules and theories like Equity Theory and Greenberg's concept of organisational justice, organisations can lessen conflict, petition for improvement in employee satisfaction and retention. In the current competitive environment, organisational justice is not only fair; it is an effective strategy for developing trust and achieving long-term success.

What is Organisational Justice?

Organisational justice is how employees experience fairness in their workplace. It encompasses the fairness of how decisions are made, the fairness of distributions of outcomes such as pay, promotions, etc., and the quality of decision-related communication that employees receive from leaders. Variable levels of organisational justice heavily impact employee trust in the organisation, employee engagement, and overall employee behaviour.

The aim of organisational justice is to create a fair and transparent world of work, a respectful environment in which employees feel valued. Fairness provides the basis that leads to balanced and impartial decision-making, including the distribution of rewards and performance assessments. Fairness allows the organisation to minimise conflict, promote trust, and develop a culture of accountability.

Organisational justice is worthwhile because fairness influences job satisfaction, stress, and employee behaviour in the work environment. A fair process and respectful discussion improve employee morale , even if the organisation does not raise pay or benefits. Fairness enhances employee satisfaction, reduces employee turnover, and increases productivity.

What are the Main Theories of Organisational Justice?

Organisational Justice is defined as the employees’ perceptions of fairness within the workplace. Justice can influence motivation, trust, and effectiveness within the organisation. Several theories have been developed over the years by researchers to explain how fairness is evaluated. The two primary theories are:

1. Equity Theory by Adams (1963):

Basically, Equity Theory suggests that people feel satisfied when the rewards they receive for doing their job (like pay, recognition, promotion etc.) are fair in relation to the work efforts they put into their job and also fair in relation to others doing the same or similar work. When people start to feel either under-rewarded or over-rewarded, it creates a sense of imbalance, causing issues with satisfaction.

2. Greenberg’s Theory of Organisational Justice (1987):

Jerald Greenberg further developed the concept of fairness to indicate that employees assess justice in three ways: outcomes (distributive justice), processes (procedural justice), and treatment and communication (interactional justice). It is not only “what” employees are rewarded with, but also “how” and “why” the decisions are made and communicated to the employee.

What are the Types of Organisational Justice?

The models of Organisational Justice describe how fairness is evaluated in the context of the workplace. Each of these types has its own focus on how fair various elements of a workplace arrangement are evaluated by employees, and how employees can view distribution, processes, and treatment when considering the levels of fairness.

types of organisational justice

1. Distributive Justice

Distributive justice is concerned with the outcomes of an employee's work, e.g., wages, promotions, or amount of work. Employees determine whether they have received value for their work or not when examining outcomes, and they also evaluate these outcomes by comparing them to peers' distributions.

2. Procedural Justice

Procedural justice is concerned with how fairly the process of decision-making is conducted. Employees value processes that are fair, transparent, consistent, and unbiased, even if the outcome is unfavourable.

3. Interactional Justice

Interactional justice is present in examining interpersonal treatment in decision-making and communication. This includes interpersonal justice (treating with respect and dignity) and informational justice (giving honest communication).

4. Retributive justice

It is important, so that when employees act improperly, sanctions are fair, commensurate with the infraction, and applied consistently throughout the organisation. It allows for less bias or preferential treatment in punishment and creates a sense of trust, by supporting the notion that the rule will apply in an equal manner across the organisation.

5. Temporal justice

Illustrates when decisions, rewards, or processes of the organization go; time matters too. It cannot forfeit fair trade in time. It evaluates fairness based on outcomes. If employees are seeking a promotion or a review, or benefits given in a time course that is delayed, they will no longer feel trust.

What are Some Examples of Organizational Justice?

Organisational justice is reflected in everyday workplace practices that demonstrate fairness in outcomes, processes, and interactions. These examples show how justice shapes trust, motivation, and employee commitment.

1. Fair Rewards and Recognition

In any organisation, non-profit, business, or government employees often compare pay, workload, and recognition. If hard work goes unnoticed, employees may feel discouraged. HR managers apply Equity Theory to create fair salaries, rewards, and promotions so everyone feels valued and motivated to contribute.

2. Unbiased Decision-Making Processes

Employees are more likely to accept negative outcomes if the process is fair. For example, when two employees are denied promotion, one may accept the result if management explains the decision clearly and respectfully. Greenberg’s model of justice, distributive, procedural, and interactional, shows that fair outcomes, open processes, and respectful communication reduce workplace conflict and build trust.

3. Respectful Treatment and Communication

Procedural justice is reflected in fair and consistent systems for promotions or evaluations. Interactional justice highlights respect in communication. For instance, if a manager politely explains why leave is denied, employees feel less upset. Respectful communication strengthens morale, trust, and loyalty in the workplace.

How Does the Organisational Justice Scale Measure Fairness?

1. Outcome Fairness

This area assesses employees' beliefs regarding whether the rewards received (such as pay, promotions, and recognition) were consistent with their hard work and performance. Rewarding employees fairly and equitably within the context of everyone's contributions is a motivator for employees and an appeal for their loyalty.

2. Process Fairness

This area assesses how the decisions were made. Employees are more satisfied when the procedures are clear, consistent, transparent, and implemented without favouritism. Being able to express their thoughts is also important for employees.

3. Communication Fairness

This scale assesses whether managers state the decisions openly and clearly communicate the reasons for their decisions. Effective, honest communication will eliminate confusion and help employees accept even unfavourable decisions.

4. Respect and Dignity

Employees want to be treated kindly and with consideration in their daily interactions with co-workers and management staff. Employees feel that being treated with respect in general contributes to a positive relationship and connection in the workplace.

5. Trust in Leadership

When outcome, process, and communication fairness are present and established, employees will trust leadership more and are more likely to be engaged in the organisation. Employees who have trust in their leadership will also be more engaged in organisational goals and efforts.

How to Manage Organisational Justice in the Workplace?

Organisations can promote justice by ensuring fairness in rewards, transparent processes, respectful communication, and opportunities for employee voice. Building trust through these practices strengthens loyalty, motivation, and workplace harmony.

how to manage of organisational justice

1. Reward Fairly

Organisations need to align compensation, promotions, and recognition so that they correlate to employee effort and performance. When rewards correlate to contributions, employees feel valued and are motivated to work hard.

2. Utilise Processes

Decisions should follow structured, consistent, and error-free procedures to ensure fairness across the organisation. Clear and transparent processes help employees understand how decisions are made, which fosters trust and acceptance, even when outcomes are not in their favour.

3. Foster Employee Voice

When businesses allow employees to express positions and opinions during evaluations, during the creation of policies, or in the handling of grievances, employees feel listened to. Employees are uneasy about decisions, but this participation fuels their acceptance of decisions.

4. Foster Respectful Communication

Leaders need to explain and articulate decision-making clearly, while also treating individuals with dignity and respect. A reasonable manner dealing with others lowers conflict and raises morale.

5. Create Trust in Leadership

Trust in management grows when leaders consistently demonstrate fairness in decisions, processes, and daily interactions with employees. When employees believe that leaders act with integrity and impartiality, it fosters loyalty, strengthens commitment, and encourages a cooperative and motivated workforce.

What are the Challenges in Organisational Justice?

Organisational justice can be hindered by bias, lack of transparency, inconsistent processes, and poor communication. These challenges can lead to mistrust, low morale, and reduced employee engagement .

1. Perceptions of Bias

Employees may feel that promotions, recognition, or workloads are influenced by favouritism or personal bias. This can reduce motivation and erode trust in management.

2. Lack of Transparency

When an organisation does not pay attention to or communicate the rationale behind decisions, employees are likely to perceive unfairness. This can lead to mistrust of the organisation.

3. Unequal Rewards

When differences exist in pay, recognition, or career progression, it can induce dissatisfaction. This is especially true when greater effort does not result in an equivalent or equitable appreciation.

4. Poor Communication

Poor, rude, or unclear communication that fails to explain the rationale for decisions can reduce trust. This can happen even if the decision-making process itself was fair.

5. Inconsistent Processes

If rules and procedures are applied inconsistently, employees may perceive favouritism or bias. This undermines trust, creating feelings of injustice and lowering morale.

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